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F ederal R eserv e Bank of Dallas F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS, TEX AS 7 5 2 2 2 v Circular No. 70-7 January 14, 1970 NEW OFFERING — TREASURY BILLS All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of two issues of Treasury bills: T he T reasury D epartm ent, by this public notice, invites tenders for two series of Treasury bills to the aggregate am ount of $3,000,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing January 22, 1970, in the am ount of $2,900,192,000, as follows: 91-DAY BILLS (to m aturity d ate) to be issued January 22, 1970, in the am ount of $1,800,000,000, or there abouts, representing an additional am ount of bills dated October 23, 1969, and to m ature April 23, 1970, originally issued in the am ount of $1,200,393,000, the additional and original bills to be freely interchangeable. 182-DAY B IL L S for $1,200,000,000, or thereabouts, to be dated January 22, 1970, and to m ature Ju ly 23, 1970. T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and a t m aturity their face am ount will be payable without interest. T hey will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Tim e, Monday, January 19, 1970. T enders will not be received a t the Treasury D epartm ent, Washington. Each tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered fnust be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions m ay not be used. I t is urged th a t tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account of customers provided the names of the customers are set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. Im m ediately after the closing hour, tenders will be opened a t th e Federal Reserve Banks and Branches, following which public announcem ent will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting com petitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Sub ject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or completed a t the Federal Reserve Bank on January 22, 1970, in cash or other im m ediately available funds or in a like face am ount of Treasury bills m aturing January 22, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m atur ing bills accepted in exchange and the issue price of new bills. T he income derived from Treasury bills, w hether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, bu t are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at which Treasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of the Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m aturity during the taxable year for which the return is made, as ordinary gain or loss. T reasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve B ank or Branch. In accordance with the above announcement, tenders will be received a t this bank and its branches at El Paso, °uston and San Antonio up to twelve-thirty p.m., Central Standard Time, Monday, January 19, 1970. Tenders m ay be entered by telephone. Yours very truly, P. E. Coldwell President LAST PREVIOUS OFFERING OF TREASURY BILLS Amount, Range and Approxim ate Y ield of Accepted Tenders 91-Day Bills 182-Day Bills D ue April 16, 1970 Due Ju ly 16, 1970 $3,156,461,000 $2,874,039,000 -Total Applied F o r_________ $1,800,145,000________________________________ T o tal_Accepted________________________________ $1,202,583,000 Price Yield Price Yield 98.029 7.797% _________________________ H igh______________________ 96.076___________ 7.762 % 98.009 7.876% __________________________Low______________________ 96.064___________ 7.785% 98.019____________ 7.837% ( 1 ) ____________________ A v erage____________________ 96.065____________ 7.784% (1 ) (1 ) T hese ra te s are on a b an k discount basis. T h e equivalent coupon issue yields are 8 .1 1 % for th e 91-day bills, and 8 .2 1 % for the 182-day bills. (S ee reverse side for tender form ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR ADDITION TO TREASURY BILLS 91 DAYS TO MATURITY Dated October 23,1969 Maturing April 23,1970 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or— ____________________ Branch T he_ E l Paso 79999 H ouston 77001 (D ate) San Antonio 78206 P u rsu a n t to the provisions of T re asu ry D epartm ent C ircular No. 418 (cu rre n t revision) and the provisions of the public announcem ent issued by the T re asu ry D epartm ent, the undersigned offers to purchase T reasu ry bills in the am ount shown below, and agrees to pay fo r the am ount allotted, on or before th e issue date, by the method and a t the ra te indicated. NONCOMPETITIVE TENDER $________________________________NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 or less from any one bidder, w ithout stated price, will be accepted in full a t th e average price (in three decimals) of accepted competitive bids. / COMPETITIVE TENDERS $ T $ _ _ @ s $ -- 1 P rices should be ex pressed on the basis of 100, w ith not more th a n th r e e decim al p la ce s, e, g., 99.925. F raction s m ust not be used. T E N D E R S MAY NOT BE E N T E R E D BY T E L E P H O N E . T E N D E R S BY W IR E , IF R E C E IV E D B E F O R E T H E CLOSING HOUR, A RE A C C EPT A B L E . P aym ent fo r this issue of bills cannot be made by credit to T re asu ry T ax and Loan Account. M ETH OD O F PA Y M E N T Denominations D esired Number of Pieces M aturity V alue @ @ @ @ @ @ @ 1,000 $ 5,000 $ $ 10,000 $ 50,000 $ 100,000 $ 500,000 $1,000,000 $ ? $ $ $ $ $ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ Pledge to secure Treasury Tax and Loan Account □ Ship to------------------------------------‘“ □ □ □ □ By maturing bills held by Payment to be made by_ . Charge our reserve account on payment date Draft enclosed (E ffectual delivery of enclosed d r a f t sh all be on la te st day w hich will p e rm it p re sen tm en t in o rd er to ob ta in irrevocably collected fu n d s on p a y m e n t date) (S u b sc rib e r’s fu ll n am e o r c o rp o ra te title) (A ddress) By- (A u th orized official s ig n a tu re a n d title ) (F o r th e acco u n t of, if te n d e r is fo r a n o th e r su bscriber) (A ddress) IM PORTANT 1. No tend er fo r less th a n $1,000 will be considered and each tender m ust be fo r an am ount in m ultiples of $1,000 (m a tu rity value). 2. Tenders should be forw arded in an envelope clearly addressed to this bank or ap propriate branch as Fiscal A gent of th e U nited States, w ith notation on the envelope reading “ T E N D E R FOR T R E A SU R Y O F F E R IN G ”. Since envelopes received w ith this legend will not be opened until a fte r th e closing time specified in the public announcement, communi cations rela tin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting tenders m ay be obtained from th is bank or ap p ro p riate branch. 3. A ny qualified or conditional ten der will be rejected. 4. I f a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make th e tender and the signing of the form by an officer of th e corporation will be construed as a representation by him th a t lie has been so authorized. I f the ten der is made by a p artn e rsh ip it should be signed by a member of the firm, who should sign in th e form “______ , a copartnership, by-----------------------------------> a member of the firm ”. 5. T enders from those other th a n incorporated banks and tr u s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of the total am ount (m a tu rity value) of the T re asu ry bills applied for, or unless th e tenders are accompanied by an express g u a ra n ty of full paym ent by an incorporated bank or tr u s t company. 6. If the language of th is form is changed in any respect, which, in the opinion of the S ecretary of th e T re asu ry i 3 m aterial, th e tend er m ay be disregarded. (See reverse for announcement)
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